LAS VEGAS – A pair of sessions today, one led by an Intel executive on Viiv, the other by a Microsoft TV honcho on IPTV shone some light on where technology is taking broadcast TV – and not five or 10 years down the road, but this year.
Kevin Corbett, vice-president of Intel’s digital home group concentrated on outlining the company’s new Viiv chipset (no surprise there). Viiv’s capability is to bring the content available on the PC to the TV – and vice versa – and also to be able to move content onto mobile devices and to and from stereo systems and so on.
What that means is that Google Video or Yahoo Video or AOL’s video, like In2TV, can quickly and seamlessly be delivered to the TV set. "This changes the distribution model for cable and satellite," said Corbett. "They are not the only aggregators of content any more. Portals become the next MSO."
(Ed note: Left unsaid is that these portals will be delivering content over, er, cable systems and telco systems which are providing broadband to the home allowing the delivery of portal content. As one Rogers Cable engineer told me today at the show: "Someone is going to have to pay for this.")
Intel has done a trial with DirecTV in the States where all of the DBS company’s content is combined with the web content using Viiv so that customers can get all sorts of content, from their own photos on their PCs to web content to broadcast TV on all of their screens.
Customers could also set up their own portals where an Indian viewer, for example, could have their own Bollywood portal, featuring video from his or her home land. The video Corbett showed was not the usual Internet "best-effort" stuff but very high quality DVD-like video.
The transactions, billing, delivery, would all be seamless, in the Viiv world.
The feeling is, said Corbett, that the business model issues and the copyrights concerns will have to work themselves out because consumers will demand it. While agreeing with that sentiment, NBC Universal’s VP Glenn Reitmeier cautioned the gathering, saying, "we have to make sure, though, that we don’t replace a billion-dollar business with a $10-million-dollar one."
The afternoon session led by Microsoft TV VP Phil Corman was like an evangelical meeting for IPTV. Broadcasters are very keen on it because they desperately want a third competitor in the market with cable and satellite. Microsoft is supplying the software to many of the telcos deploying it and the telcos have to do it because there are so many voice competitors eating their lunch.
IPTV is a reality this year, says Corman, who pointed to AT&T, Verizon, Swisscomm and Bell Canada as leaders. But to be successful, the IPTV providers must leverage what the IT infrastructure can bring in order to differentiate themselves from cable and satellite, Corman said.
This led back to the earlier Intel discussion where TV is delivered in concert with what can be found on the Internet, rolled into one service, available on all screens.
The key differentiation is additional capabilities and better performance, said Corman. Such things as better content searching, faster channel change and quicker guide reaction times will be features of IPTV, which recognizes the fact that customers complain about the slow digital channel-changing as compared to the quick-surf analog world.
And on-demand programming will be completely integrated. "Today, it’s an afterthought," he said. Like the Intel demonstration, content is content, viewable and searchable however the customer wants it, with VOD content shown with the linear content and not shunted off to its own walled garden.
All devices are going to be integrated when it comes to IPTV service providers: the PC, the TV, the cell phone, the Xbox. "People should be able to access their photos on their TV as easily as changing channels," said Corman.
The reason for all this functionality is that the war won’t be fought on exclusive content, added AT&T TV’s VP Jeff Weber, because content providers don’t want such limitations and IPTV carriers aren’t big enough yet. Disney’s Helene Dina agreed with that, saying her company wants content available as widely as possible.
So, if it’s not a fight over content and not a price battle, the only other choice is different TV, integrating many platforms and all types of media, "If it’s not better TV, they simply won’t win," added Corman.
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